It’s crucial for a recruitment company to know the financial value of an individual visitor to their website. This will inform how to better monetize your advertisements and marketing channels. By following these steps, you’ll be able to calculate what an individual website visitor is worth depending on the different channels they arrive to your site from. First, you need to find out what an average placement is worth to the company in general. In most cases this figure will be known by senior management. In the below example, we are going to work with the idea that an average placement is worth £3,000.
What Percentage of Your Database Get’s Placed
First find out what percentage of your internal database has been hired at some point since being added to your database. If you have 10,000 people on your database and 500 candidates have been placed in total, it would mean 5% of your internal database have been placed successfully at some point. Therefore, a candidate who gets added to the database is worth 5% of £3,000 – as for every 20 candidates, one gets placed (worth £3000 to your company). This will give you a good idea of how much an average candidate – that is good enough to get added to your database – is worth, e.g. 5% of £3,000 is £150.
Identify the total value of new candidates
Next, we need to find out the worth of new candidates by identifying what percentage of new users who apply though your site are good enough to be added to your internal database. For example, if 100 of every 1000 applications you receive through your website are strong enough to get added to your internal database (10%), an application to your company through the website is worth 10% of £150, which equals £15.
Calculate the conversation rate
Now, with these figures to hand, you’ll need to setup goals in Google Analytics to track the number of users that convert on your website, (apply for a job, contact you or register). For example, if we know that 10% of people who visit the site apply for a job, a unique website visitor is worth 10% of £15, which equals £1.50.
We now know that a visitor from all our digital channels (on average) is worth £1.50 in revenue to the brand. So, if we bring anyone to the site for less than £1.50, we are moving in the right direction.
Get in touch with Terrier and we can help you identify how you can work out what each digital channel is worth, (social referral, direct users, organic visitor, etc.).